QUICK INFO: Relative Strength Index is one of the basic indicators widely used in forex, stocks and binary options trading. RSI is an oscillator that helps predict overbought and oversold market levels.
RSI is one of the basic indicators that can be combined with many other indicators. Relative strength index can serve as the main indicator or the confirmation indicator with different trading strategies and systems. Relative Strength Index or RSI is an indicator that defines the strength or weakness of a traded asset based on the closing prices in a selected time period. RSI is an oscillator, which means it moves between the levels of 0 and 100. Levels below 30 are considered as oversold conditions and imply that the price should go UP and above 70 are considered as overbought conditions and imply that the price should go DOWN. When trading binary options the RSI Indicator can help the trader to find profitable entry positions for market reversals in the overbought or oversold markets and also to avoid bad trades in direction of continuation of the trends.
In the periods of longer trends the RSI Indicator can stay above the level 70 or below the level 30 for longer time. To be able to predict the occurrences of longer trends a useful indicator to use is the Directional Movement Index. For defining overbought and oversold conditions also Stochastic Oscillator - another indicator similar to RSI - can be utilized.
LIKE THE SITE? CLICK FOR SUPPORT
|It is a big help and motivation for me to continue running and improving this website. Thanks!|
24option is the world's biggest broker with great educational program for beginners. Get personal support, tutorials, free webinars, demo account,trading signals and more.
I use 24option for over 3 years and I feel very confident to recommend this broker to any trader.
To visit 24option website - CLICK HERE
Stockpair is one of my favorite brokers which I follow and trade with for the last two years. Stockpair is the 4th most popular broker in the world, but I feel confident to rank it as #1, side by side with 24option.
To read the full review and learn why I consider Stockpair to be one of the best binary options brokers - CLICK HERE.